Derivatives exchange volumes booming, says FIA

The world’s derivatives exchanges saw a 37% increase in trade volume last year, up 1.61 billion contracts from last year’s 5.99 billion, according to the Futures Industry Association (FIA).

The FIA, which collected data from 56 exchanges, said growth in options trading was particularly strong, rising 47%, or 1.22 billion contracts, to 3.8 billion contracts last year. The strongest growth came from equity index derivatives, with global turnover increasing 86% to 2.79 billion.

“Volume rose in all sectors of the market, but the category with the greatest increase was trading in equity index derivatives such as index options, index futures and options on index futures,” said the FIA.

Growth in the trading of exchange-traded futures and options on individual stocks was more muted, however, rising 7% to 1.3 billion contracts globally.

In the US, equity index options volumes increased 26%, or 33.9 million contracts, to 160.3 million contracts. Meanwhile, volume in equity index futures jumped 107% to 222 million contracts. At the same time, however, options on individual equities trade volume fell 3%, or 22 million contracts, to 679 million contracts.

The global exchange-traded interest rate derivatives market grew 13% last year, to trade 1.39 billion contracts, said the FIA. In the US, interest rate futures volumes increased 22% to 419 million contracts, while options activity on interest rate futures rose 27% to 160 billion contracts.